Unemployment may cause further trade restrictions

Press, 22 May 1978, Page 6

Unemployment may cause further trade restrictions

PA Dunedin More Tasman trade restrictions were possible, especially while unemployment in New’ Zealand and Australia remained at present high levels, said the Deputy Prime Minister (Mr Taiboys) to delegates to the Foreign Policy School in Dunedin at the week-end.

Economic conditions pre-l eluded any immediate expan-1 sion of the free-trade arrangement bv the addition' of goods to Schedule A of N.A.F.T.A., Mr Taiboys said. But, he said countries would have to trade their’ way out of the present recession. not protect their way out. “The answer to our present problems, Australia’s as well as New Zealand’s, is not! to put up more and more barriers, and to let our costs rise higher and higher. “The answer is to concentrate on doing what we do best, to make the most efficient use of our resources, and to make our products competitive with those of other countries,” he said. In spite of present difficul-i ties. Mr Taiboys said, he believed that the Australian; Government saw the need to’

i strengthen Tasman links as] 2 much as did the New Zea-'s ! land Government. p i After his recent tqar of c Australia, Mr Taiboys said,; ..it was evident that It ; N.A.F.TA. had a major role I ‘ ■ to play in the restructuring < ■ i of the New Zealand economy. This year’s N.A.F.T.A. t negotiations were “nerve- f • racking” and “tense” but < ; they achieved significant if < not dramatic results. i; One of the most important;! > I things to come out of this I year’s meeting was the con* t sideration in detail of pro- 1 i cedures to assist industrial ■ development. This would be s , considered further by the i ; heads of Australian and New t ’ Zealand departments at a meeting next month. Mr Tai- t boys said. t Some of the historical dif- r I Acuities and issues influen- t Icing the development of New f

Zealand-Australia relationships were explored in a paper by Professor A. Ross of Dunedin. He emphasised that the two countries are separate “with some mutual, and some opposed, interests.” He said they were bound to promote their own interests first, ‘sometimes irrespective of the effect on' the other.” “But they are equally bound to pull together in the face of any challenge or threat from the outside,” Professor Ross said. Where mutual interest such as security or defence was to be served, agreement would be comparatively easy. “But where their interests are opposed or at variance, as in some economic or commercial fields, no easy agreefnent will be possible,” Professor Ross said.